Bulgarian Association of Clubs and Restaurants and Union of Clubs and Restaurants in Bulgaria express their congratulations for the winners of the last parliamentary elections and thank all the parties with which they had a dialogue regarding the problems of the industry.
The vote of the Bulgarians is already clear and the negotiations for forming a government have started. Talks on the tourism sector are scheduled for November 26th. In this regard the two organizations sent letters to the four parliamentary forces negotiating the formation of a cabinet with specific proposals for urgent short-term measures that will help our industry survive.
As is well known, tourism, and in particular the hotel and restaurant industry, has suffered the most from the COVID-19 crisis. This has led to many bankruptcies, difficulties for the sector, loss of labor.
Guided by the above, we suggest:
First of all, it is extremely important that the 9% VAT rate be maintained. For most of the last year, the sector was closed and could not benefit from the reduced VAT because it did not generate revenue. The rest of the time he worked with serious limitations. A working option must be found for companies registered after 2019 to also receive support.
We are of the opinion that the measure 60/40 should return to its old version, in which support was obtained with a proven drop in turnover of 20% compared to 2019. Under the current version of the measure with a 30 or 40% drop in turnover in compared to 2019, this practically means bankruptcy. Especially in a situation where the prices of EVERYTHING compared to 2019 have risen many times. In reality, the most affected business can benefit from this measure only after the introduction of the "green certificate", when turnover falls by about 80%.
We believe that the loans already announced should be replaced by grants. And if there are loans for hotels and restaurants, they must go through the Bulgarian Development Bank and be under the supervision of the Ministry of Economy, as commercial banks do not give loans to the sector, which they consider extremely risky due to constant restrictions are imposed.
We believe that the rapid tests for COVID-19 should be free. There is a European program that takes on both the test and the testing. This does not burden the budget.
And last but not least, it is vital to find an emergency option for small and medium-sized businesses in terms of electricity prices. Survival with ever-increasing energy costs and declining revenues is impossible. This is proved by the many bankruptcies that are already a fact in the sector.
We wish success to the negotiators for forming a government and we hope that they will act responsibly to the problems of small and medium business, which is extremely important for the entire Bulgarian economy.
